Not finishing contract?

I dont, but there is a celadon forum in the trucking companies forum

 

It's called breach of contract and the school has several remedies available to them. I would check out this website about garnishment. If at all possible you need to get started with the company ASAP. Most will allow you to slip orientation a week or two maybe longer if you have a good reason.

 

Read the contract, see if it has a clause where legal action will be taken. Keep in mind most places can add late fees and interest, as well as a default interest rate of close to 28%. If the company is in Indiana, they can get a judgment in Indiana, and put it on your credit record, where it will stay for 10 years. You may say, I can't get to Indiana, which is what they want, if you fail to show up they will get a default judgement. Depending on the state, there is a number of things they can do, lien any real property, garnish wages, own a vehicle free and clear? It can be up for grabs and auctioned to satisfy the judgement. There is also the infamous trick where they notify the IRS you owe them money, that refund you counted on, gone. They can also go after any savings, checking, and whatnot. I would try and make a payment arrangement for $20 a month until it is paid off, with the understanding there will be no further late fees, interest accrual, and no negative comments on your credit reports.

 

Let's be realistic guys...
All of this is if the loan is defaulted on.
What will happen is the school will try and collect the money and fail. They will then sell it to a collections agency who will try and collect. The will sell it to another collections agency. They will sell it to another agency. This keeps going on for years until it is finally bought by a collections agency that is local enough to actually file suit. Once that happens simply set up a payment plan or even better let the suit happen and demand proof of debt. It has been sold so many times by then, there is no signature and case dismissed.

All of that is pointless to the question though. No, being under contract should not hurt as it is just another loan at that point, not an employment contract. As for the mentions of non-compete some companies might be afraid if you actually have one (doubtful), but in just about every jurisdiction a simple employee cannot be held to one. Only CxO's of a company can, or sometimes people in sales or the like.

In a nutshell walking out on a contract should be no worse than any other time of job hopping. Keep it down and don't change jobs every 3 months and you should be fine.

 

Another thing they can do is write the money off, then 1099 you for the money. At that point the money becomes taxable. What some people fail to understand is the school tuition is considered in most situations as a loan. I know several people that have received 1099-Cs. I know a gal that quit 4 or 5 months after school. Then the school after a good while sent her a 1099-C for almost 4 grand. She lost what was a large refund and had to take a new loan on her car to pay the rest. This is reported to the state too. FICA taxes have to also be paid. It cost her around $1500.

 

That depends on what their policy is, and how the loan was made. If it was Federal Money, it was an infamous student loan, which you are on the hook for, and cannot be discharged, even in bankruptcy. If what everyone says is true, and the schools are getting Fed Money, you will not escape, interest and penalties accrue and before you know it a few thousand balloons to tens of thousands. The only way they will know is to look at the contract. I know here the schools will get a Student Loan for you, and it will come back to haunt you. Student Loans can't be erased in a bankruptcy, sit there and collect interest if you do nothing. I would definately go see an Attorney, pay the $450 to find out what type of loan it really is, how it is enforced, and what your recourse is. I personally feel you need to man up, you signed a contract, you should have read it before you signed it, and you agreed to the terms. Now you don't like it. This is why a handshake and your word are no longer good.

 

People leave trucking companies by the dozens every day when they're under contract for a school debt. They all find new jobs within a few days. It's not like you work for a company that has secret patents or you had influence on their stocks, information on future contract bidding, insider trading information, then leave. Under those contracts you have a non-compete clause. Trucking companies, you are just a blue collar worker where there's dozens of new students standing in line to take your place. It's no big deal.

 

Tell them to stuff the bill where the sun doesn't shine. If they complain, flip them the bird and consider keying the bosses car. Have a few beers and move on, and find another job. When it shows up on your credit report, dispute it with every bureau.

 

They may forget about it if he tells them he want to return in a few months even if he doesn't plan to return.